Monster Beverage (MNST) wants your business, ladies.
Drinkers of Monster's beverages tend to skew male, but the energy drink company is going after female consumers with new products designed to compete with Starbucks' (SBUX) frappuccino.
Monster plans to "introduce products that are less formidable, less intimidating," Chairman and CEO Rodney Sacks said at the Beverage Forum conference on Thursday, outlining several channels for growth. "We're obviously looking at a brand that will probably appeal more to the female consumer," with a lower energy content and fewer calories, he said.
One such existing product, he said, is Java Monster, a canned coffee drink that competes against a Starbucks double espresso shot. The product has the full energy load of a Monster drink but resembles coffee.
Monster also plans to finally launch an enhanced water, Hydro, and a frappuccino-adjacent Caffe drink. The Hydro launch has been delayed, leading Wells Fargo analyst Bonnie Herzog to express "concerns about the ability for Monster's new innovation to have any meaningful impact on sales this year, suggesting the recent slowdown in the energy category may persist."
Monster shares are up 2.1% in 2017, lagging the broader stock market, as the slowdown in energy drinks has taken hold.
"Water is growing, particularly value-added water," Sacks said. Hydro adds an energy element but in a lighter formula, according to Sacks, so it's more drinkable and has broader appeal.
Monster is also partnering with Dunkin' Brands' (DNKN) Dunkin' Donuts, debuting a frozen energy drink at Dunkin' Donuts locations that contains a full can of Monster Energy.
The Corona, Calif., company is also examining how it can capitalize on the better-for-you, wellness-focused food trend.
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